Economic Growth Between Emerging And Developed Economics Essay

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Nowadays, the various economic growth patterns are very common in both emerging and developed economy. The countries that are having most advanced economy and highly developed capital markets with high levels of liquidity is called developed country. Developed countries are mostly located in North America and Western Europe, including nations like the U.S, Germany, U.K., Canada, Australia, New Zealand and Japan. Emerging countries can be identifying with rapid growth rate and development but lower per capita than developed countries, namely Brazil, Russia, India, and China, Ireland, Italy, Greece, Spain. The economic growth of countries can be measured by gross domestic product (GDP) per capita. This essay is going to find out “What are the main reasons behind different rate of economic growth in emerging and developed economics in last 15 years?” In hear I selected five emerging and five developed economics, and do analysis through five selected numerous factors to identify reasons behind different rate of economic growth. 1. Literature Review Inflation Inflation can influence economic performance throughout the monitory policy of the economy. The economic specialists argue, that inflation effect economic growth of nations by decreasing domestic and foreign saving, inefficiency and ineffectiveness of resource allocation and declining balance of payment. Fischer and Modigliani (1980) suggested that there is a nonlinear and negative relationship between the rate of
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